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Assessor Manuals, Exemption Administration

Exemption Administration Manual—Part 2: Multiple dwellings and urban renewal

Section 4.07 - Pub Hsng L Section 52(3), 52(5), 52(6): Municipal Housing Authorities (Project financed or aided by federal government or municipality, but not by New York State)

Exemption code(s)

18080

Year originally enacted:

1939

Related statutes:

None.

Summary:

Real property that is:

  1. Owned or under the control of a municipal housing authority (MHA),
  2. financed or aided by a municipality or the federal government, but not by New York State, and
  3. used for low-income housing is wholly exempt from taxation, but is liable for special ad valorem levies and special assessments. The duration of the exemption is limited, and payments in lieu of taxes may be required by the municipality in which the property is located.

Eligibility requirements

Ownership requirements:

Property must be owned by an MHA or leased by it for at least 10 years. Additionally, the project must be financed or aided by the municipality or the federal government, but not by New York State.

Property location requirements:

None.

Property use requirements:

Property must be primarily used for housing for low-income persons or families. The statute sets no limits on the income of low- income persons. Portions of the property may be used for nonhousing purposes if they are incidental or appurtenant to the housing project.

Certification by state or local government:

None required.

Required construction start date or other time requirement:

None.

Local option

An existing exemption for a federally aided project shall be extended for an additional period following the expiration of the initial tax exemption period. An existing exemption for a municipally aided project may be extended for an additional period following the expiration of the initial tax exemption (see Limitations on exemption below).

Limitation on exemption

Limitation on exemption by amount, duration, and taxing jurisdiction
General municipal taxes School district taxes Special ad valorem tax Special assessments
1. Amount No limit No limit No exemption allowed No exemption allowed
2. Duration Yes* Yes* No exemption allowed No exemption allowed
3. Taxing jurisdiction
a. County or county special districts Ex NA Tax Tax
b. City Ex NA NA Tax
c. Town or town special district Ex NA Tax Tax
d. Village Ex NA NA Tax
e. School district NA Ex NA NA
Ex-Exempt     Tax-Taxable     NA-Not Applicable

* Duration of the exemption is limited as follows:

1. Project owned by MHA:

  1. Federally financed or aided: 60 years. After the expiration of the initial 60-year period, an additional 60-year period begins.
  2. Municipally financed or aided: 50 years. After the expiration of the initial 50-year period, an additional exemption period of up to 50 years may be granted.

2. Project leased by MHA:

Term of lease, however, a minimum lease period of ten years is required.

Payments in lieu of taxes

None required. However, if payments in lieu of taxes are fixed or agreed upon by the municipality, such payments may not exceed the taxes last levied on the property prior to its acquisition by the MHA unless such project is federally financed or aided and the federal government has consented to a greater amount.

Since they are not collected by the tax collector, payments in lieu of taxes should not be entered on the tax roll. Such payments are collected in the same manner as are other payments due the municipality under contract.

Calculation of exemption

General municipal and school district taxes:

100% of assessed value.

Special ad valorem levies and special assessments:

No exemption allowed.

Coding of exemption on assessment roll

Coding of exemption on assessment roll
Code Description of alternative codes possible
18080

Assessment roll section(s):

Exempt (RPS Section 8).

Note: his code should not be used to identify property that is exempt under any of the statutes listed under Similar exemptions below.

Filing requirements (owner or occupant of property)

None.

Reporting requirements (assessor)

None.

Similar exemptions

See Chart IA and Chart IB.

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